Nearly five years after Vishal Garg became synonymous with Better.com’s controversial firing of about 900 employees on a Zoom call, his tenure at the mortgage fintech has ended in a far more complicated way.
Garg was removed as CEO on August 3, 2026, with Daniel Lewis named interim CEO. But the leadership change has since turned into a boardroom dispute, with Garg seeking a return to an executive role. The development comes as Better reports stronger loan volumes and revenue, but remains loss-making.
Vishal Garg’s Exit Turns Contentious
Better initially announced on August 3 that Garg would transition from CEO and that Lewis, who had joined the board on July 27, would become interim chief executive. Garg was to remain on the board.
The company’s account changed sharply on August 14. Better said its board, excluding Garg, had unanimously voted to terminate him after a series of decisions and actions raised concerns about his “judgment, temperament and credibility”. The company also said Garg was seeking to return to an executive position and had called on five directors to resign.
Better further alleged that Garg’s refusal to execute mandatory representation letters delayed the filing of its Form 10-Q. It also said communications reviewed by the board’s counsel raised potential securities-law concerns. These are allegations made by Better and should not be treated as established violations. Garg’s side has disputed aspects of the company’s account.
Better Is Growing, But Losing
The boardroom conflict comes against a mixed financial backdrop.
Better’s second-quarter 2026 results showed loan volume rising 38% year-on-year to $1.67 billion, while total net revenue increased 28% to $54.7 million. Platform loan volume reached $912 million, representing 55% of total volume.
The company’s losses, however, remain substantial. Better recorded a $30.6 million net loss in Q2, although that was narrower than the $36.3 million loss recorded in the same quarter of 2025. Adjusted EBITDA loss improved to $14 million from $22.9 million. Importantly, the latest adjusted EBITDA figure included a $6.5 million benefit from a reserve release related to older loans, so the improvement needs to be viewed in that context.
Better ended June with $102.3 million in cash and cash equivalents and $9.6 million in restricted cash. For Q3, it expects loan volume between $1.375 billion and $1.525 billion, revenue between $49 million and $52 million, and an adjusted EBITDA loss of $15 million to $18 million.
AI Strategy Faces Reality
Better is trying to reshape its mortgage business around its Tinman AI platform and partnerships rather than relying solely on direct-to-consumer lending.
The shift is already visible in its numbers. Platform-originated loans accounted for 55% of Q2 volume, while home-equity lending increased 45% from the previous quarter. Purchase loans represented 49% of Q2 volume, refinancing 33% and HELOCs 18%.
The company has also increased its targeted annualised cost savings to more than $45 million by year-end 2026, compared with its earlier $25 million target.
The numbers suggest progress in revenue generation and operating efficiency, but not yet a completed turnaround. Better remains loss-making, and its Q3 guidance still anticipates a negative adjusted EBITDA.
From Zoom Layoffs To Board Fight
Garg’s latest confrontation with Better inevitably revives the episode that made him a widely recognised figure in the startup world.
In December 2021, Better laid off about 900 employees, around 9% of its workforce, during a Zoom call. Garg subsequently apologised for the way the layoffs were communicated, saying he had mishandled the execution. He also took time away from the company while its board undertook a leadership and cultural assessment.
Better’s corporate trajectory has changed substantially since then. In August 2023, it completed its combination with Aurora Acquisition Corp and became a publicly traded company on Nasdaq as Better Home & Finance Holding Company.
The company now faces a different test. Better needs to demonstrate that higher loan volumes, AI-enabled distribution and cost reductions can translate into sustainable financial performance while the founder’s future role remains contested.
For now, Lewis is running the company, Garg remains a director according to the company’s August 14 statement, and the dispute over leadership is unresolved. The most consequential question is no longer simply why Garg was removed. It is whether Better can execute its turnaround strategy while its founder attempts to regain influence over the business he built.
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